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Past Interactions and New Foreign Direct Investment Location Decisions

Author

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  • Elizabeth L. Rose

    (Helsinki School of Economics)

  • Kiyohiko Ito

    (University of Hawai’i at Manoa)

Abstract

Analyzing the nature of competitive interaction among multinational firms in the tire industry, we find that the histories of the interactions between particular rivals matter. The decision to enter a new foreign market in the era of global consolidation is related to the identities of rivals in the market, characteristics of the firm and the market, and the extent of past competitive interactions with the international pioneering firm. Results suggest that, in an oligopolistic environment, aspects of multimarket competition are important to foreign direct investment decisions.

Suggested Citation

  • Elizabeth L. Rose & Kiyohiko Ito, 2009. "Past Interactions and New Foreign Direct Investment Location Decisions," Management International Review, Springer, vol. 49(5), pages 641-669, October.
    • Handle: RePEc:spr:manint:v:49:y:2009:i:5:d:10.1007_s11575-009-0010-y
    DOI: 10.1007/s11575-009-0010-y
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    References listed on IDEAS

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    Cited by:

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    2. K. Skylar Powell, 2014. "Profitability and Speed of Foreign Market Entry," Management International Review, Springer, vol. 54(1), pages 31-45, February.
    3. Fiona Kun Yao & Ming-Jer Chen & Jiatao Li & Danielle Combs & Qiang Li, 2024. "A review of 50 years of research since Knickerbocker (1973): competitive dynamics in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(5), pages 522-550, July.
    4. Terence Ping-Ching Fan & Alex Tai Loong Tan, 2015. "How Product Attributes Influence Internationalization: A Framework of Domain- and Culture-Specificity," Management International Review, Springer, vol. 55(1), pages 53-76, February.

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